Todays Gold Price Delhi, August 3, 2022: Gold Price Falls, Sharp Dip In Silver Price

Gold price in the national capital on Wednesday declined by Rs 208 to Rs 51,974 per 10 grams, according to HDFC Securities. The yellow metal had closed at Rs 52,182 per 10 grams in the previous trade, according to PTI report.

Silver also fell sharply by Rs 1,060 to Rs 57,913 per kg from Rs 58,973 per kg in the previous trade.
In the international market, gold was trading higher at USD 1,767 per ounce while silver was flat at USD 19.93 per ounce, as per PTI report.

"Gold prices pared some gains on dollar recovery and rise in US bond yields," said Tapan Patel, Senior Analyst (Commodities) at HDFC Securities.

What Is Sovereign Gold Bond Scheme? Should You Invest In It?

Sovereign Gold Bonds or SGBs are issued by Reserve Bank of India on behalf of government of India at the issue price. SGBs are issued in denomination of 1 gram of gold and multiples thereof. They have a maturity period of 8 years with an exit options available at the end of 5th year to be exercised on the interest payment date. They are also tradable on the stock exchange. Investment in SGBs are subject to lock-in until a period of 5 years.
Sovereign Gold Bonds have the backing of government of India. The idea behind introducing Gold Bonds was to assist investors participate in the movement of gold prices without having to buy and sell physical gold, according to Motilal Oswal. Sovereign gold bonds are available with diverse features which are not available with other forms of gold investments. There are several benefits of Sovereign Gold Bonds that can be described below as:

Sovereign gold bonds are cost effective when compared to possessing physical gold. It is ideal to possess gold in the form of sovereign bonds because when you purchase and sell jewellery, you incur the loss of 15-20 towards making charges every time you change gold form. You may possess sovereign gold bonds (SGBs) in the form of physical certificates or in your demat account. You can also escape the worries of maintenance of gold and loss in translation in the form of SGBs, according to Motilal Oswal.

SGBs pay you interest on your gold holdings. When you possess gold in physical form, you do not receive any regular assured income. You tend to gain when the price of gold rises. On the other hand, in the case of SGB, you can receive an annual interest of 2.50%. Earlier, the rate of interest was 2.75%. The SGBs are free from default risk as the interest payments and principal redemptions are guaranteed by government of India.